Files show British prime minister was warned of 'reputational risk' in
appointing Mandelson
[March 12, 2026]
By JILL LAWLESS and BRIAN MELLEY
LONDON (AP) — British Prime Minister Keir Starmer was warned that Peter
Mandelson ’s friendship with convicted sex offender Jeffrey Epstein
exposed the government to “reputational risk,” but he still appointed
him as ambassador to the United States, documents released Wednesday
show.
Starmer fired Mandelson after nine months in the job when new details of
the relationship with Epstein emerged, and now faces a political storm
over the appointment. The newly published files show the prime minister
ignored red flags raised by his staff when he appointed the savvy but
controversial Mandelson to the U.K.'s most important diplomatic post.
Mandelson was briefly arrested last month by police investigating
allegations he passed sensitive government information to Epstein a
decade and a half ago.
A two-decade friendship with Epstein
Concerns were raised in a document sent to Starmer in December 2024 when
he was considering appointing Mandelson, an elder statesman of the
governing Labour Party, to a diplomatic post seen as vital to
establishing relations with U.S. President Donald Trump's
administration.
A “due diligence report” prepared by senior civil servants summarized a
relationship between Mandelson and Epstein that ran from at least 2002 —
the year Mandelson "facilitated” a meeting between Epstein and
then-Prime Minister Tony Blair — to 2019, the year of Epstein's death.
The document notes that “Mandelson reportedly stayed in Epstein’s house
while he was in jail in June 2009” for sexual offenses involving a
minor, and cites a 2019 report commissioned by JPMorgan which said
Epstein had “particularly close relationship” with the then-Prince
Andrew and with Mandelson.
It also spelled out unrelated reputational issues over Mandelson’s work
in a previous Labour government — when he twice had to resign over
financial matters — and his work at Global Counsel, a lobbying firm he
co-founded.
Despite the red flags in the documents, Cabinet minister Darren Jones
said the due diligence “did not expose the depth and extent” of Mandelson's friendship with Epstein. He said Mandelson had lied to
Starmer about the friendship.
“Peter Mandelson should never have been afforded the privilege of
representing this country,” Jones told lawmakers in the House of
Commons. “I reiterate for the House that the prime minister deeply
regrets taking him at his word. It was a mistake to do so.”
Political fallout could hit Starmer
Starmer fired Mandelson in September after an earlier release of
documents showed he had maintained contact with Epstein after the
financier’s 2008 conviction.
Further details about Mandelson’s ties with Epstein, revealed in a huge
trove of files published by the U.S. Department of Justice in January,
raised new questions about Starmer's judgment, driving opponents and
even some members of the governing Labour Party to call for the prime
minister’s resignation.
Starmer survived the immediate danger, but his position remains fragile,
even though he never met Epstein and is not implicated in his crimes.
The 147 pages of documents published Wednesday were released after
lawmakers forced Starmer’s government to disclose thousands of files
about the decision to name Mandelson to the key diplomatic post at the
start of Trump’s second term.
The government says the files will show Mandelson misled officials.
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A print out copy of the documents released by the British government
are photographed in London, Wednesday, March 11, 2026, and show
officials believed there was a "reputational risk" to appointing
Peter Mandelson as the U.S. ambassador because of his relationship
with convicted sex offender Jeffrey Epstein. (AP Photo/Frank
Augstein)
The documents are being published in batches after review by
Parliament’s Intelligence and Security Committee. Police have asked
the government not to release files that could compromise their
criminal investigation into Mandelson.
The documents published Wednesday note that Mandelson was asked
questions about his relationship with Epstein, and say the prime
minister's communications director was "satisfied with his
responses.”
The responses themselves have not yet been published because of the
police investigation.
And the files raise more questions for Starmer. After Mandelson was
fired, National Security Advisor Jonathan Powell told the prime
minister’s lawyer that he had raised concerns about “the individual
and reputation” and found the appointment process “weirdly rushed,”
the documents show.
Ed Davey, leader of the opposition Liberal Democrats, said Starmer
had made a “catastrophic failure of judgment."
Conservative lawmaker Alex Burghart said that while Mandelson might
have lied to the prime minister, "he wasn’t lied to by this due
diligence document.
“The prime minister knew all he needed to know. It was on him. It’s
on him now. He let his party down. He let his country down. I very
much doubt that either will trust him again.”
Mandelson faces a police probe
The Epstein files released in January suggest that Mandelson sent
market-sensitive information to the convicted sex offender when he
was the U.K. government’s business secretary after the 2008
financial crisis. That includes an internal government report
discussing ways the U.K. could raise money, including by selling off
government assets.
Mandelson also appears to have told Epstein he would lobby other
members of the government to reduce a tax on bankers’ bonuses.
Mandelson, 72, was arrested Feb. 23 at his London home on suspicion
of misconduct in public office. He has been released without bail
conditions as the police investigation continues.
He has previously denied wrongdoing and hasn’t been charged. He does
not face allegations of sexual misconduct.
He has been forced to resign from the House of Lords, and has lost
his 157,000 pound ($210,000) a year ambassador's salary. The
documents show that after being sacked Mandelson asked for a 547,000
pound payoff, the rest of his four-year salary.
In the end, the government gave him 75,000 pounds.
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